ENTREVESTOR: Dartmouth pet food firm acquired

PETER MOREIRA
Published July 26, 2017 – 7:29pm

Dane Creek Capital Corp. this week agreed to buy pet-related assets of Dartmouth-based Nature’s Way Canada in its latest step in building up a Nova Scotia-based portfolio of sustainable pet food products.

Dane Creek is a Mississauga, Ont.-based merchant bank specializing in pet-related businesses, and in the last nine months it has done three deals in Nova Scotia.

As a result, it has established a Nova Scotia-based holding company called Dockside Investco to house its investments in the province.

The company issued a statement Tuesday saying it would buy the non-manufacturing pet assets of Nature’s Way Canada, which makes supplements for dogs and cats under the CanineOmega3 and FelineOmega3 brands. They plan to close the deal by Sept. 30.

“We are excited to be making this announcement,” said Dane Creek president and CFO Glen Tennison in the statement.

“Nature’s Way is well known for manufacturing high-quality supplements for both people and pets.

“We look forward to working with them to create a wide range of supplements to meet the needs of health-conscious pet owners shopping online, in pet specialty retail stores and in mass retail and grocery stores.”

Tennison and Dane Creek CEO Mark Warren did not respond to requests for an interview.

The parties did not disclose the terms of the deal, under which Dane Creek will acquire all current and future brand formulations. Nature’s Way will continue to produce supplements for Dane Creek over the next six years.

Nature’s Way, an affiliate of Dr. Willmar Schwabe Pharmaceuticals of Germany, came to the Halifax area in 2015 when it bought Dartmouth-based Ascenta Health, whose NutraSea brand of nutritional products are made naturally from omega-3 fatty acids.

Nature’s Way, a global natural health leader, decided to make Dartmouth its Canadian headquarters and has continued to grow the business since the acquisition. It will continue to produce and market products for humans in Dartmouth.

“Our partnership with DCCC will allow Nature’s Way to focus more closely on the development and manufacturing aspect of our business,” said Steve Chiasson, vice-president and general manager of Nature’s Way Canada.

“Our track record in human supplements speaks to our expertise in those areas and we look forward to bringing that to the expanding market for pet supplements.”

The buyers also entered the Nova Scotia business community through an investment. Last year, Dane Creek said it paid an undisclosed sum for a 48-per-cent stake in Midgard Insect Farm Inc. of Windsor.

The insect farm, which won $45,000 in Innovacorp’s Spark West competition last year, produces protein from crickets and converts it into its Dockside brand of pet treats.

In November, Dane Creek announced the creation of Dockside Pet Products Inc., the first pet treats and meal mixer manufacturer to exclusively use “rescued fresh food” and sustainable ingredients.

As well as using crickets, Dockside pet foods include such ingredients as cauliflower, wild blueberries and lobster shell.

Tennison said in the statement the deal with Nature’s Way will continue the growth story.

“In addition to the opportunities this opens up, this partnership is also about creating jobs in Nova Scotia and our commitment to the development of a pet industry hub in the province,” said Tennison.

“Combining our distribution capabilities with Nature’s Way’s manufacturing excellence is a formula which will lead to a bigger business supporting more jobs.”